Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) The market capitalization is the total market value of its outstanding shares.
• B) The market portfolio is the portfolio of all risky investments.
• C) Many practitioners believe it insensible to use the CAPM and the security market line as a practical means to estimate a stock's required return and therefore a firm's equity cost of capital.
• D) To estimate the equity cost of capital using the CAPM, the first thing we need to do is identify the market portfolio.

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The process through which a person's feelings, beliefs, or behaviors towards a particular object or idea are altered.

Message Characteristic

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Audience Characteristic

Traits or features that define a particular group of viewers, listeners, or readers of specific media or content.

Message Component

Elements or parts of a message that contribute to its overall meaning and effectiveness in communication, such as content, tone, and context.